China’s PBC auctions 1.2b yuan off reverse repo
People’s Bank of China (PBC) announced on Tuesday a seven-day 1.2 billion-yuan reverse repo at an interest rate of 1.7 per cent.
The Chinese central bank aims to maintain stable liquidity within the banking system as the first half of 2024 draws to a close.
Notably, the PBC offered 3.5 billion yuan on Monday, September 2nd, through seven-day reverse repurchase agreements, maintaining the same interest rate.
A reverse repo is a tool used by central banks to manage liquidity. The PBC purchases securities from commercial banks through a bidding process, with an agreement to resell them back in the future.
Attribution: PBC’s website
Subediting: M. S. Salama
